ID :
21792
Mon, 09/29/2008 - 10:38
Auther :
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http://m.oananews.org//node/21792
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Lehman effect: Indian banks post Rs. 410-crore M.T.M. losses
New Delhi, Sep 28 (PTI) The Indian banking sector saw a mark-to-market (M.T.M.) losses of around Rs. 400 crore due to their investment in instruments of troubled U.S. financial giants like Lehman Brothers and A.I.G., 75 percent of which is accounted by I.C.I.C.I. Bank alone.
"In terms of M.T.M. losses of the banking sector
including private sector, stood at Rs. 410 crore owing to
financial crisis in some of financial institutions. Of this,
I.C.I.C.I. Bank alone has M.T.M. loss of about Rs. 309 crore,"
a senior Finance Ministry official told P.T.I. here.
M.T.M. is based on the market value of underlying
securities and keep varying. M.T.M. is a notional loss but it
would be reflected in the balance sheet.
Besides, some state-owned banks had exposure in the
instruments of these troubled U.S. financial institutions to
the tune of Rs. 234 crore.
"Exposure of a few public sector banks to credit-linked
and floating rate notes of Lehman Brothers and other troubled
institutions is about U.S.D. 52 million," he said.
In his first reaction after the collapse of Lehman
Brothers and the bailout of the largest U.S. insurer A.I.G.,
Finance Minister P. Chidambaram had said India's financial
institutions were on a sound foundation.
As far as P.S.U. banks are concerned, in which the
government is a majority owner, he had said they didn't have
any "undue exposure".
"In fact, many of them have no exposure at all. Whatever
exposure they have are in accordance with R.B.I.'s prudential
guidelines," he said, adding, I.C.I.C.I. Bank had some
exposure which it has disclosed.
The London subsidiary of I.C.I.C.I. Bank had U.S.D.
80-million exposure in the senior bonds of Lehman Brothers.
I.C.I.C.I. Bank Joint Managing Director Chanda Kochhar
had said the investment by the subsidiary constitutes less
than one percent of the total assets of the subsidiary and
less than 0.1 percent of the consolidated total assets of the
I.C.I.C.I. Group.
On June 30, 2008, I.C.I.C.I. Bank and its subsidiaries
had consolidated total assets of Rs. 484,643 crore.
The Finance Minister had said while the country's banking
system was reasonably insulated from the global crisis, the
credit crunch could have some effect in India as well.
"If there is a credit crunch in the rest of the world,
it will, to some extent, impact the credit availability in
Indian market. R.B.I., day before Saturday, took steps to
provide liquidity to the banks," he had said. PTI DP
"In terms of M.T.M. losses of the banking sector
including private sector, stood at Rs. 410 crore owing to
financial crisis in some of financial institutions. Of this,
I.C.I.C.I. Bank alone has M.T.M. loss of about Rs. 309 crore,"
a senior Finance Ministry official told P.T.I. here.
M.T.M. is based on the market value of underlying
securities and keep varying. M.T.M. is a notional loss but it
would be reflected in the balance sheet.
Besides, some state-owned banks had exposure in the
instruments of these troubled U.S. financial institutions to
the tune of Rs. 234 crore.
"Exposure of a few public sector banks to credit-linked
and floating rate notes of Lehman Brothers and other troubled
institutions is about U.S.D. 52 million," he said.
In his first reaction after the collapse of Lehman
Brothers and the bailout of the largest U.S. insurer A.I.G.,
Finance Minister P. Chidambaram had said India's financial
institutions were on a sound foundation.
As far as P.S.U. banks are concerned, in which the
government is a majority owner, he had said they didn't have
any "undue exposure".
"In fact, many of them have no exposure at all. Whatever
exposure they have are in accordance with R.B.I.'s prudential
guidelines," he said, adding, I.C.I.C.I. Bank had some
exposure which it has disclosed.
The London subsidiary of I.C.I.C.I. Bank had U.S.D.
80-million exposure in the senior bonds of Lehman Brothers.
I.C.I.C.I. Bank Joint Managing Director Chanda Kochhar
had said the investment by the subsidiary constitutes less
than one percent of the total assets of the subsidiary and
less than 0.1 percent of the consolidated total assets of the
I.C.I.C.I. Group.
On June 30, 2008, I.C.I.C.I. Bank and its subsidiaries
had consolidated total assets of Rs. 484,643 crore.
The Finance Minister had said while the country's banking
system was reasonably insulated from the global crisis, the
credit crunch could have some effect in India as well.
"If there is a credit crunch in the rest of the world,
it will, to some extent, impact the credit availability in
Indian market. R.B.I., day before Saturday, took steps to
provide liquidity to the banks," he had said. PTI DP
